The Union Cabinet raised the dearness allowance for 4.85 million central government employees by three percentage points to 63% ahead of Diwali.
The revised allowance takes effect from July 1, 2026, while a similar increase in dearness relief applies to 6.87 million pensioners.
The combined financial impact on the exchequer for both increases will be ₹10,016.10 crore per annum.